A Bull Surge: Will History Repeat?
“Gold Prices ‘to surge’ at end of bull run”
Author: Goldbug
Website: BullionVault.com
Can you use history as a guide when planning for the future? According to GFMS gold analyst Nick Goodwin, you can. He suggests that, based on historical market behavior, a “very strong acceleration” of gold prices is possible in the near future.
We’re in the middle of a bull run on gold that began in 2001 when it was merely $250 an ounce. The last bull run was in the late 70s to early 80s.
So what can we learn from that last run?
“In the last stages of that bull market,” says Goodwin, “you get very strong acceleration in the price and we haven’t really seen that here, where you almost get like a vertical climb and it started in sort of late ‘79 and then moved into ‘80 and in those last few months you had almost like a doubling in the Gold Price. Well we haven’t seen that yet. I think we could still see that coming.”
Though it’s difficult to compare eras and factors contributing to the gold price now and then, we have yet to see that major spike that we saw in the last run. If it happens, Goodwin says we should expect prices up to $1,200, particularly next year when the economic stimulus takes full effect, resulting in inflation.
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